Hay = "There are/there is/are there"
Por ejemplo, cuando se usa en una oración (singular):
"Hay un hombre mirándote." // THERE IS a man looking at you.
Plural:
Hay pimientos en la nevera? // ARE THERE peppers in the fridge?
Your example:
Cuantas personas hay? // How many people ARE THERE?
You can even use it in replacing a contraction "There's":
Mostrar que hay una estrategia ganadora para el primer jugador. // Show that THERE'S a winning strategy for the first player.
Yes, it sounds a little weird depending on the context if you're trying to translate it from English -> Spanish.
Hopefully this helps you get a better picture. I'm not native, so take it with a grain of salt. I typically do my research when learning a language :-)